Current Affairs

Bimal Jalan Committee Report on RBI Surplus Funds

Current Context: The Bimal Jalan Committee on Economic Capital Framework met on 17th July 2019 for the final time to decide on transferring of surplus reserves to the government
Bimal Jalan Committee Report on RBI Surplus Funds
  • The final report of the Committee is to be presented before RBI Governor Shaktikanta Das in 15 days
  • It’s a 6 member committee headed by Bimal Jalan (former RBI governor) and other members include Finance Secretary Subhash C Garg, RBI deputy governor Rakesh Mohan (vice-chairman of the panel), RBI deputy governor NS Vishwanathan, and RBI central board members Sudhir Mankad and Bharat Doshi
  • RBI had the total surplus cash reserve of Rs 9.43 lakh crore on 30th June 2018
  • According to the finance ministry, the buffer of 28 % of gross assets maintained by the RBI is well above the global norm of around 14 %
  • The RBI board decided to constitute a panel to examine the economic capital framework (ECF) in its meeting on November 19, 2018
  • Three committees in the past examined the issue of RBI’s reserves- V Subrahmanyam (1997), Usha Thorat (2004) and Y H Malegam (2013)
  • Subrahmanyam committee recommended to build up to 12 % of the contingency reserve
  • Thorat committee said the reserve adequacy should be maintained at 18 % of the total assets
  • The RBI board decided to continue with the recommendation of the Subrahmanyam panel only

Question: 

Q.1 Out of the given options, which committee is related to the surplus transfer of reserves between RBI and the government? 
a. H.R. khan committee
b. Tapan Ray committee
c. Bimal Jalan committee
d. TN Mahoharan committee
Bimal Jalan Committee Report on RBI Surplus Funds Bimal Jalan Committee Report on RBI Surplus Funds Reviewed by Neha Verma on July 18, 2019 Rating: 5

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